Potential homebuyers in Vancouver are going to have to dig a little deeper into their wallets if they want to own a home. According to the latest numbers from the Real Estate Board of Greater Vancouver (REBGV), the price of an average home in Vancouver now totals $1,019,400. It’s yet another testament to Vancouver’s extreme real estate market.
The new benchmark price is 8.7% higher than this time last year, and 2.1% from this June. The benchmark price collectively includes condos, single family detached homes, and townhomes. Breaking it down into the three separate categories, it paints both a somewhat more optimistic and dreary picture of the market. Townhomes and condos remain below that figure, selling typically for $763,700 and $616,600 respectively. However, single family detached homes are well above the combined average, with an average price of $1,612,400 – nearly $1 million more than a condo.
While this certainly is evidence a fiery real estate market, REBGV president Jill Oudil claims in a recent news release that housing demand is inconsistent across the region. She explains, “Pockets of the market are still receiving multiple offers and others are not. It depends on price, property type, and location.” In particular, she observed that it’s taking twice as long, on average, for detached homes to sell than condos and townhomes.
However, it’s expected that prices will continue to rise. Home prices rise when the sales-to active listings ratio is above 20% for several months—which it definitely has been. According to the REBGV, the rate at which properties of all types were selling for in July was 32.2%. Analysts typically agree that home prices drop when that ration dips below 12%, meaning we are still 20% above where we need to be if we want to see prices drop.
Home prices in Vancouver have reached a new height with the new $1+ million benchmark price. While there are some inconsistencies in the market, it looks like the high prices are here to stay for the foreseeable future.